Attracting Strong Investor Interest, Oregon State Treasury Completes $745.4 Million in Bond Sales

The Oregon State Treasury successfully completed two General Obligation (GO) bond sales this month through its Buy Oregon Bonds Program, providing $745.4 million for statewide projects, programs, and veterans housing assistance programs. The two completed sales included:

1. $695.4 million GO bonds - Series, A, B, and C
2. $50.0 million GO bonds - Series D (Veterans' Welfare Bonds)

The strength of Oregon bonds continues to attract strong investor interest in the bond market, from institutional and retail investors to local municipalities. Notably, the sales received a number of orders from Pacific Northwest municipalities like the City of Vancouver (WA), TriMet, Port of Portland, Benton County, and the State of Washington, among others. The first completed bond offering received approximately $354 million in retail orders alone - the most for a single sale this year.

Oregon State Treasurer Elizabeth Steiner said, "The strong response to these bond offerings shows that Oregon remains an attractive option for investors. These bonds will give the state and local partners the capacity to provide more desperately needed homes to Oregonians, strengthen buildings against earthquakes, and preserve priceless natural wonders."

$695.4 million GO bond sale - Series, A, B, and C
The first sale, a $695.4 million GO bond issuance, featured 3rd-party verified sustainability bonds and $200 million refinancing of existing state debt. Proceeds from this sale will fund approximately 21 legislatively-approved projects and programs across 14 state agencies, including capital improvements to state facilities, such as the renovation and seismic upgrading of the state's Labor and Industries building in Salem, affordable housing programs, the purchase of a new state park - Abiqua Falls, and more.

The$322.5 million sustainability bonds component will support Oregon's Permanent Supportive Housing and Local Innovation and Fast Track Housing Programs. Kestrel, an approved verifier accredited by the Climate Bonds Initiative, awarded the accreditation following an independent external review in which they determined the projects and associated Series B bonds would address housing needs in Oregon, meet green building requirements, and advance Oregon's goal of reducing statewide energy consumption and greenhouse gas emissions. This was the sixth issuance of sustainability bonds by Treasury since 2021, generating more than $1 billion in proceeds dedicated to sustainable affordable housing.

Treasury also took advantage of favorable market conditions and strong state credit ratings to refinance $200 million of existing state debt during the sale, reducing debt service costs and increasing capacity for future issuances. The refunding is projected to yield approximately $21 million in present value savings.

$50.0 million GO bonds - Series D (Veterans' welfare bonds)
The month's second GO bond offering, featuring veterans' welfare bonds (Series D), generated $50 million to support the Oregon Department of Veterans' Affairs' mortgage loan program, which provides mortgage loans to qualifying veterans. Since its inception in 1945 the program has helped more than 330,000 veterans and their families with the acquisition of and improvements to residences and farms in all 36 Oregon counties.

The Oregon State Treasury is responsible for approving all bonds and appropriation credits for state agencies. The agency manages the issuance of public bonds through the Buy Oregon Bonds Program. By providing strategic financial oversight, Treasury helps state and local government agencies secure necessary funding for infrastructure, education, and other capital improvement initiatives.

For more information about the Buy Oregon Bonds Program and upcoming bond offerings visit: www.BuyOregonBonds.com